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Perhaps, as prices rise, supply traces out an inverted U-shape or an S-shape?Such choices of form matter more than most modellers recognise, argues Ross McKitrick, of the University of Guelph in Canada.
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Higman asserts that efficiencies would partially compensate for the tax's imposition, but he accepts that prices would rise: supply-side taxes are usually passed on to consumers, at least to some degree.
Rising supply also pushed pushed prices down.
Rising demand will result from rising supply.
"Rising demand for housing must be matched with rising supply.
It is textbook economics: falling demand and rising supply.
Demand globally, though, was expected to grow slightly, offset by rising supply outside of OPEC.
For most commodities, rising supply and falling demand would drive prices down.
The biggest cause of the falling price is rising supply from non-OPEC countries, particularly from America.
But many experts believe the rising supply of natural gas means it can substitute for other fossil fuels.
Certainly, there are plenty of experts who expect prices to remain high for many years, even if rising supply pricks today's gas bubble eventually.
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